On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $2,400 of the merchandise to Una Imports for credit. Home pald cash for the merchandise on April 15, Year 1. Required a. What is the amount that Home Furnishings must pay Una Imports on April 15? b. Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity. LA for Investing activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, Year 17 d. Record the payment of the merchandise in Requirement (c) In a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element is not affected by the event, leave the cell blank. Complete this question by entering your answers in the tabs below. Required Required Required Required A B C D Record the payment of the merchandise in Requirement (c) in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require entry.) Events Pay accounts payable HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet =Liabilities + Stockholders' Equity Accounts Common Retained Revenue - Expenses = Payable Stock Earnings Assets Cash + Inventory = +
On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $2,400 of the merchandise to Una Imports for credit. Home pald cash for the merchandise on April 15, Year 1. Required a. What is the amount that Home Furnishings must pay Una Imports on April 15? b. Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity. LA for Investing activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, Year 17 d. Record the payment of the merchandise in Requirement (c) In a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for Investing activity, FA for financing activity, or NC for net change In cash. If the element is not affected by the event, leave the cell blank. Complete this question by entering your answers in the tabs below. Required Required Required Required A B C D Record the payment of the merchandise in Requirement (c) in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require entry.) Events Pay accounts payable HOME FURNISHINGS Effect of Events on the Financial Statements Balance Sheet =Liabilities + Stockholders' Equity Accounts Common Retained Revenue - Expenses = Payable Stock Earnings Assets Cash + Inventory = +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Req D only
Transcribed Image Text:On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8,
Home returned $2,400 of the merchandise to Una Imports for credit. Home pald cash for the merchandise on April 15,
Year 1.
Required
a. What is the amount that Home Furnishings must pay Una Imports on April 15?
b. Record the events in a horizontall statements model. In the Cash Flow column, use OA to designate operating activity.
LA for Investing activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the
event, leave the cell blank.
c. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, Year
17
d. Record the payment of the merchandise in Requirement (c) In a horizontal statements model. In the Cash Flow
column, use OA to designate operating activity, IA for Investing activity, FA for financing activity, or NC for net change
In cash. If the element is not affected by the event, leave the cell blank.
Complete this question by entering your answers in the tabs below.
Required Required Required Required
A
B
C
D
Record the payment of the merchandise in Requirement (c) in a horizontal statements model. In the Cash Flow column, use OA to designate
operating activity, IA for investing activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event,
leave the cell blank. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require entry.)
Events
Pay
accounts
payable
HOME FURNISHINGS
Effect of Events on the Financial Statements
Balance Sheet
=Liabilities + Stockholders' Equity
Accounts Common Retained Revenue - Expenses =
Payable Stock Earnings
Assets
Cash + Inventory =
+
<Required C
Income Statement
Net
Income
Statement
of Cash
Flows
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